Efficient asphalt production and storage

The Problem:

A major asphalt producer needed to consider the cost benefits in investing in "hot-bins" at their asphalt production plants. Hot bins are used as a temporary storage facility for pre-made asphalt and allow for the stock-piling of asphalt in advance of need, but only on a day to day basis. Each hot-bin can hold one type of asphalt mix and costs of the order of hundreds of thousands of dollars.

The questions then arise as to :

• How many hotbins are needed to meet potential manufacturing requirements?
• What asphalt mixes should be placed in the bins?
• What are the potential cost savings, if any, achieved through use of hot bins?

Solution:

We developed software to analyse historical data on asphalt orders. From this information, profiles of asphalt usage by type and day of week were developed.

Separately, simulation software of an asphalt production plant was developed and algorithms governing the use of hot-bins defined. The daily asphalt profiles were then run through the simulation in order to determine the waiting times for trucks purchasing asphalt, and hence allowing quantification of the efficiency benefits of using hot bins as compared with current operating procedures.

The results were subsequently used as an important input to the business case for purchasing hot bin capacity in their South Australian plants.